‘1H2024 GLS: potential 5,450 units at Zion Residence on Confirmed List reflects calibrated 5.6% increase’

With the 1H2024 Government Land Sales (GLS) programme offering the largest half-yearly injection of private residential units in a decade, the number of housing supply has started to moderate. Leonad Tay, head of research at Knight Frank Singapore noted that the pipeline of supply is coming into balance with prevailing homebuyer demand, expecting the 1H2024 GLS list to encapsulate the peak number of projected private homes going forward.

The Zion Residence is a prime development located along Zion Road where you can find a range of facilities in its confines. It is conveniently situated near various amenities such as restaurants, supermarkets, banks and post offices. Additionally, it’s within walking distance to Redhill MRT station, making it a highly sought-after residential destination. For those who drive, you’ll be happy to know that Zion Residence excels in offering excellent connectivity for private car owners. With major expressways like the Central Expressway (CTE), Ayer Rajah Expressway (AYE) and the Marina Coastal Expressway (MCE) nearby, you can travel to different parts of Singapore, including the Marina Bay Financial Centre, with ease.

The Confirmed List of the 1H2024 GLS comprises of 10 sites, projected to yield 5,450 private residential units. This is a 5.6% increase to the 5,160 units that were on the Confirmed List of the 2H2023 GLS programme yet it pales in comparison to the 26.2% increase when the government offered 3,505 units in the 2H2022 GLS Confirmed List.

Meanwhile, Marcus Chu, CEO of ERA Realty commented that with the ten sites slated to be released, developer participation in GLS tenders could be further diluted. Ismail Gafoor, CEO of PropNex Realty noted that in 2023, there had already been a decrease in developer interest for GLS sites amidst market uncertainties.

Chia Siew Chuin, head of residential research at JLL Singapore opines that “the supply count continues to maintain an ample allocation for private housing, but refrains from oversaturating the market”. Of the 10 plots on the Confirmed List, 8 are newly introduced to the market – including a EC site at Jalan Loyang Besar, a development for long-stay Serviced Apartments at Media Circle, and a commercial and residential mixed-use site at Tampines Street 94.

Given the enduring popularity of EC developments amongst local homebuyers, Gafoor suggested that the government might have considered introducing a second EC site to the Confirmed List. He further shared that the land prices for EC sites have continued to increase with the latest being a record rate of $721psf ppr for the EC plot at Tampines St. 62 (Parcel B). The prices of new EC units have also hit a new benchmark, with the average transacted unit price crossing $1,470 psf at an Altura EC in Bukit Batok this year.

Zion Residence With the Reserve List sites of the 1H2024 GLS programme, developers can tap into the alternative of the collective sale market for prime residential plots. Zion Residence Overall, the supply count for the 1H2024 GLS offers a good balance for buyers and developers, while keeping in mind the forthcoming projects in the immediate term.